CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
The invention of mobile technology and related devices has resulted in increased efficiency in the way commercial and business tasks are carried out (Tiwari and Buse, 2007; UNCTAD, 2007). Mobile telephony is one such technology. Mobile telephony serves as a launch pad for new mobile phone applications and services (UNCTAD, 2007). The concept of mobile commerce is born from the use of mobile technologies for commercial purposes (m-commerce). In both developed and developing countries, the number of mobile phone subscribers has reached new highs (Boadi et al., 2007; UNCTAD, 2007). The mobile market is one of the world’s fastest expanding markets (Gupta, 2005; UNCTAD, 2007).
Financial institutions have taken advantage of this chance to acquire a competitive advantage by providing a number of value-added services to consumers via mobile banking (Gupta, 2005).
Mobile phones are now capable of functioning as stand-alone personal computers (Kiesnoski, 2000). Today’s cheapest cell phones have the processing capacity to serve as a digital “mattress” and bank for the impoverished (Friedman, 2010). The remarkable growth in mobile phone usage around the world further adds to this. Mobile banking, often known as mbanking, is gaining popularity around the world as a result of globalization. For example, in 2005, the number of mobile transactions in South Korea increased by 104 percent on a daily average to 287,000, and the number of registered users increased by 108 percent over 2004. (Korea Times, 2006). In the United States, 30 percent of households are expected to utilize mobile banking in 2010. (Mobile Marketing Association, 2009). Between 2010 and 2011, the number of Chinese people using mobile banking surged by 150 percent (Cellular News, 2011). Many bank clients in Europe are willing to pay a fee to access mobile banking (Tiwari & Buse, 2006). Nigeria now has over 100 million active mobile subscriptions, making it an ideal location for m-banking. a four-month trial period to show that the system can work in the country (Daily Times Nigeria). Mobile banking (m-banking) is a mobile commerce application that allows clients to bank virtually at any time and anywhere (Suoranta, 2003). It involves the provision of banking and related financial services on mobile devices, such as savings, money transfers, and stock market transactions, among others (Tiwari and Buse, 2007). In several countries, the m-banking market has experienced remarkable expansion. In the United States, for example, roughly 30% of families use their mobile phones to conduct financial transactions (MMA, 2009). This is also true in European and Asian countries, where mobile banking is used by 80% of families (Gupta, 2005). Mobile phones are the most extensively utilized communication technology in Africa (ITU, 2007).
When compared to other continents, this has allowed Africa’s mobile market to grow at the highest rate in the globe. (International Telecommunication Union, 2007). Nigeria is one of Africa’s leading markets for mobile banking applications (UNCTAD, 2007).
The Federal Government of Nigeria, through its regulating financial institution, the Central Bank of Nigeria (CBN), implemented a cashless policy in 2012 to help the country improve and modernize its payment system. This is intended to aid Nigeria in achieving its Vision 2020 aim of being one of the world’s top 20 economies by 2020, among other things. Another motivation for this policy is to lower the cost of banking services (including credit) and to promote financial inclusion by lowering the cost of banking services (including credit). Lagos has been chosen as the experimental state, with intentions to roll out the program across the country. On daily cash withdrawals or cash deposits over N500,000 for individuals and N3,000,000 for corporate organizations, the policy imposes cash handling costs. All third-party cheques have a withdrawal limit of N150, 000, according to the rules. To ensure the policy’s success, all banks must provide electronic banking channels and encourage customers to use them (CBN, 2011). The success of the cashless policy, on the other hand, depends on the development and implementation of alternative payment systems such as e-banking, m-banking, e-wallet, ATM cards, and so on. As a result, a study like this would discover significant elements affecting one of the CBN’s preferred alternative payment systems, Mobile Banking. Once these characteristics have been empirically validated, policy makers will have a better understanding of how to encourage the usage of mobile banking. In addition, a model defining mobile banking acceptability in Nigeria will aid policymakers in anticipating barriers to adoption, hence improving the correctness of related policies.
STATEMENT OF THE PROBLEM
According to available data, mobile banking in Nigeria, and indeed Africa, has a large development potential. According to data, 30% of Nigeria’s adult population (25.4 million people) has at least one bank account, while 56.9% of the adult population is unbanked (UNCTAD, 2012). Almost every one of Nigeria’s 23 banks now offers mobile banking services. Account notifications, account balances update and history, customer assistance via mobile, bill payments, fund transfers, and transaction verifications are all services available on most m-banking platforms. Despite the enormous potential for mobile banking to succeed in Nigeria, the rate of adoption is still low when compared to what is available in other emerging countries in Africa and Asia.
According to studies, Kenya, South Africa, India, and Botswana use mobile payment systems at a higher percentage than Nigeria (UNCTAD, 2011).
Several studies on mobile banking have been undertaken locally. Mutua (2009) looked at mobile banking as a strategic response by equity banks to the external environment’s challenges. Otieno (2008) investigated the obstacles of implementing mobile banking information systems in Nigerian commercial banks. Rather, none of these studies looked into the elements that influence customer acceptability of mobile banking in Nigeria; however, this study will look into the aspects that influence consumer acceptance of mobile banking in Nigeria.
OBJECTIVE OF THE STUDY
The primary goal of this research is to determine the elements that influence customer acceptability of mobile banking in Nigeria. More specifically, the research will:
1. Research the elements that influence Nigerians’ acceptance of mobile banking.
2. Determine the extent to which Nigerians use mobile applications.
3. Learn about the hurdles that commercial bank customers have when it comes to accepting mobile banking.
4. Provide a solution to the issues that prevent commercial bank customers from accepting mobile banking.
RESEARCH QUESTION
Is there anything in Nigeria that influences customer acceptance of mobile banking?
2. What is the extent to which Nigerians use mobile banking applications?
3. What are the barriers to clients’ acceptance of mobile banking in commercial banks?
RESEARCH HYPOTHESIS
In Nigeria, there is no important factor influencing customer acceptance of mobile banking.
Hello, in Nigeria, there is a big element influencing customer acceptance of mobile banking.
SIGNIFICANCE OF THE STUDY
The findings of this study are likely to add to the adoption literature in the field of mobile banking, particularly in developing countries. To be more specific, to fill the void that exists for Nigeria by providing as a springboard for additional research. The findings of this study can be utilized by banks to improve mobile banking services and identify elements that can contribute to the failure or success of the mobile banking industry, which can then be used to make decisions.
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